Stocks appear on track to open Tuesday’s session on a mixed note after Monday’s sharp retreat amid the climb in bond yields. Given the lack of any major market-moving data and earnings news, the market could witness directionless trading until Friday. All eyes could be on the yield on the 10-year Treasury note, which is considered a proxy for rate expectations.
The major U.S. averages closed Monday’s session notably lower, as a strong service sector reading tempered expectations for a Fed easing. All sector indices moved to the downside, led by consumer discretionary, energy and financial stocks.
| Index | Performance (+/-) | Value | |
|---|---|---|---|
| Nasdaq Composite | -1.93% | 3,998.84 | |
| S&P 500 Index | -1.79% | 4,071.70 | |
| Dow Industrials | -1.40% | 33,9741.10 |
With the Fed officials going into a quiet period ahead of next week’s Federal Open Market Committee meeting, the market is expected to look toward economic data for trading cues. The Dec. 13- Dec. 14 Fed meeting is key for the market direction going into the end of the year.
“With the next major hurdle for the S&P 500 at 4,100 another dose of a “dovish” Powell may be needed even more than positive seasonality,” said Quincy Krosby, chief global strategist for LPL Financial.
Here’s a peek into index futures trading:
| Index | Performance (+/-) | |
|---|---|---|
| Nasdaq 100 Futures | +0.13% | |
| S&P 500 Futures | +0.04% | |
| Dow Futures | -0.02% | |
| R2K Futures | -0.14% |
In premarket trading on Tuesday, the SPDR S&P 500 ETF Trust SPY rose 0.08% to $399.90 and the Invesco QQQ Trust QQQ moved up 0.11% to $287.96, according to Benzinga Pro data.
On the economic front, the Commerce Department is scheduled to release its trade balance report for October at 8:30 a.m. EST. Economists, on average, …….
